China has officially blocked U.S. tech giant Meta’s planned acquisition of AI startup Manus, ordering that the deal be unwound, according to official sources.
Regulatory Reversal on Cross‑Border AI Deals
On April 27, 2026, China’s National Development and Reform Commission (NDRC), acting through its foreign investment review office, issued a brief notice prohibiting the foreign acquisition of the Manus project and required all involved parties to withdraw from the deal, as reported by Bloomberg and Reuters.
The terse statement from the NDRC offered no further explanation beyond citing compliance with Chinese laws and regulations, Bloomberg noted, while Reuters emphasized that the decision underscores Beijing’s commitment to preventing the transfer of advanced AI technologies abroad.
Deal Background and Context
Meta had announced in December 2025 that it would acquire Manus—an agentic AI startup founded in China and later based in Singapore—for roughly $2 billion, according to TechCrunch and The Guardian. The deal was expected to integrate Manus’s AI agent technology into Meta’s products like Meta AI.
Manus was initially founded in China, under an entity affiliated with Butterfly Effect Technology, and moved its headquarters and operations to Singapore by mid-2025. The acquisition involved Manus employees and executives joining Meta’s ranks, particularly within its Singapore offices, TechCrunch reported.
Strategic and Geopolitical Implications
This regulatory intervention arrives amid intensifying geopolitical competition over AI capabilities between the U.S. and China. The move by Beijing signals its willingness to apply rigorous oversight over cross-border deals involving advanced tech and AI, mirroring U.S. export controls and investment restrictions targeting Chinese firms, analysts told the Associated Press.
Experts cited by AP view the move as a clear indication that China regards AI talent and technology as strategic assets and sees such acquisitions as potential risks to national security. This may deter other Chinese AI firms from pursuing similar transactions, especially with U.S.-based acquirers.
Meta’s Response
Meta responded by stating that the transaction complied fully with applicable law and expressed expectation for a constructive resolution to the regulatory inquiry, as reported by CNN and The Washington Post. No further detail was provided by the company regarding next steps.
Conclusion
China’s abrupt cancellation of Meta’s Manus acquisition marks an unusually forceful intervention in a cross-border tech deal. It underscores the rising regulatory risks confronting global tech companies, especially in the AI sector, and signals a further hardening of China’s stance amid the intensifying technological rivalry with the United States.